How expensive is forex trading?
There is money to be made in forex trading, and it is not relatively expensive. Forex trading can be as expensive or as worthwhile as you make it, as with any type of trading it is up to you how mush risk you are willing to shoulder. Most commonly, an online forex broker will permit customers to perform margin trades at up to 100:1 leverage, so that an investor may execute trades of 100,000 with an initial margin requirement of 1000. Whilst this type of leverage can mean that investors maximise their profit potential, it also means that their loss potential is equal. Depending on your risk appetite, you may want to be more cautious. A new investor should perhaps use a more sensible margin trade, such as 20:1 until they find their feet.